- Hire a dedicated employee benefits specialist. This person could be in-house (as a Benefits Administrator or Compensation and Benefits Manager) or external (such as a Benefits Broker). ...
- Find the right software. It’s very difficult (and unnecessary) to manage benefit packages without the help of technology. ...
- Measure benefits and costs diligently. This will be the responsibility of the finance department, but it’s important for HR to keep track of rising or plummeting costs and gains. ...
- Include a description of benefits and perks in your Employee Handbook. No number of great benefits will be effective if employees don’t know they have them. ...
- Monitor employees’ wishes and needs. Employees’ needs may change. Offering free lunches and gym memberships is great for younger employees. ...
Full Answer
What are the best perks for employees?
What are the best companies to work for if you're a woman ... "But more companies need to take action and make changes to their pay policies, benefits and hiring practices to retain women." He adds: "Employees are not expecting perfection, they just ...
What jobs have good benefits?
IKEA
- Competitive medical and prescription plan (for co-workers who work more than 20 hours/week)
- Generous 401 (k), dental and vision plans
- Retirement plan called “Tack” (the Swedish word for “thank you”)
- Tuition assistance
- Co-worker discount and meal deal
- Pet insurance
- Generous parental and paid-time off package
What companies offer the best benefits?
The 20 Best Company Benefits And 11 Companies That Offer Them
- Gold’s Gym – offers 11 of top 20 benefits
- IBM – offers 11 benefits
- L’Oreal – offers 6 benefits
- Amazon – offers 6 benefits
- Aetna – offers 6 benefits
- UNICEF – offers 5 benefits
- Experian – offers 5 benefits
- Microsoft – offers 5 benefits
- Massage Envy – offers 5 benefits
- JPMorgan Chase – offers 5 benefits
What benefits should employers offer?
What Are Mandatory Employee Benefits?
- Social Security, Medicare, and FICA. Social Security and Medicare are considered statutory benefits. ...
- Unemployment Insurance. ...
- Workers' Compensation Insurance. ...
- Health Insurance. ...
- Family and Medical Leave Act Protections. ...
- Disability insurance. ...
What are the 4 major types of employee benefits?
There are four major types of employee benefits many employers offer: medical insurance, life insurance, disability insurance, and retirement plans. Below, we've loosely categorized these types of employee benefits and given a basic definition of each.
Do all employees receive benefits?
There are no federal laws requiring plans to provide the same benefit coverage to all employees. However, some states have laws on certain benefits, such as paid sick leave, that apply to all of an employer's employees.
What are typical employee benefits?
Various types of employee benefits typically include medical insurance, dental and vision coverage, life insurance and retirement planning, but there can be many more types of benefits and perks that employers choose to provide to their employees.
Do employees pay for benefits?
An employee benefits package typically includes healthcare insurance, retirement plans, vacation and paid time off. Generally, these packages will cover 80%, and in some cases 100%, of healthcare costs. Both the employer and employee pay the monthly premium on benefits.
Can you offer benefits to some employees and not others?
Is It Legal to Offer Different Benefits Packages? Technically, there are no federal laws that require an employer to provide benefit plans with the same coverage to their employees. In fact, employers can offer different benefits to different employees, as long as they treat "similarly situated individuals" equally.
What are 3 examples of employee benefits?
The most common types of employee benefits offered today are:Medical insurance.Life insurance.Disability insurance.Retirement contributions and pension plans.
What benefits should I ask for?
Consider hiring bonuses, vacation time, retirement plans, sick leave, insurance, and other company benefits as open for negotiation as well. If you are planning to go back to school, tuition reimbursement may be just as important as health insurance.
What are 5 employee benefits?
Here is a list of the top five types of benefits employers can offer to employees - each can be a valuable tool for recruiting and retaining employees.1) Health Benefits. ... 2) Retirement. ... 3) Workplace Flexibility. ... 4) Wellness Program. ... 5) Tuition Reimbursement.
What is the federal unemployment tax?
The Federal Unemployment Tax Act (FUTA), with state unemplo yment systems , provides for payments of the unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only the employer pays FUTA tax; it is not withheld from the employee’s wages.
What is unemployment benefit?
Unemployment insurance payments (benefits) are intended to provide temporary financial assistance to unemployed workers who meet the requirements of state law. Each state administers a separate unemployment insurance program within guidelines established by federal law.
What is the OWCP?
The Department of Labor's Office of Workers' Compensation Programs (OWCP) administers four major disability compensation programs that provide wage replacement benefits, medical treatment, vocational rehabilitation and other benefits to federal workers or their dependents who are injured at work or who acquire an occupational disease.
What is the most important benefit provided by an employer?
A health plan can be one of the most important benefits provided by an employer. The Department of Labor's Health Benefits Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) provides information on the rights and protections that are afforded to workers under COBRA.
Does the employer pay FUTA tax?
Only the employer pays FUTA tax; it is not withheld from the employee’s wages. The Department of Labor provides information and links on what unemployment insurance is, how it is funded, and how employees are eligible for it. In general, the Federal-State Unemployment Insurance Program provides unemployment benefits to eligible workers who are ...
Is fringe income taxed?
Fringe benefits are generally included in an employee’s gross income (there are some exceptions). The benefits are subject to income tax withholding and employment taxes. Fringe benefits include cars and flights on aircraft that the employer provides, free or discounted commercial flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events.
Is an employer's health insurance taxable?
If an employer pays the cost of an accident or health insurance plan for his/her employees, including an employee’s spouse and dependents, the employer’s payments are not wages and are not subject to Social Security, Medicare, and FUTA taxes, or federal income tax withholding.
What is the difference between a PPO and an HMO?
For medical insurance, an HMO allows you to go to specific doctors contracted with your insurance company while a PPO gives more flexibility in doctors but may have more out-of-pocket expenses. Consider life insurance if you have a family to support and disability insurance even if you don't.
What is an HMO and PPO?
You may have to choose between a Health Maintenance Organization (HMO) and a Preferred Provider Option (PPO) for medical insurance. An HMO allows you to go to doctors that are contracted with a specific insurance company. If you have a specific doctor you like to use, ask to see the list of doctors on that plan or go to ...
How often can you change your 401(k)?
Often, your 401 (k) contribution amount and investment choices can be changed on a fairly regular basis, but the medical and life insurance choices may be set up so that you can only change them once or year. Check with your benefits administrator if you think you need to make some changes.
What is MEWA in business?
Some services may be offered through a Multiple Employer Welfare Arrangement (MEWA), where a small business may group with other small businesses to provide benefits to their employees. Be sure to check how soon your benefits become effective. Health insurance or 401 (k) benefits may not start immediately.
What does disability insurance do for you?
Disability insurance can help keep you and your family on firm financial ground if an accident or illness prevents you from working.
How long can you stay on your employer's health insurance after leaving a job?
It is important that you file right away for coverage as there is a time limit. Also, COBRA is a temporary solution that generally only covers you up to 18 months after you leave. 5
What to do if you don't understand your pension?
If you are offered a benefit that you do not understand, companies usually have websites set up to explain what they offer. If not, check with human resources or the benefits administrator.
When should I provide benefits?
We understand that offering benefits can seem like a huge task, but there are a few key moments in your business when you know it’s time to offer health care:
What types of health benefits should I provide?
As we touched on earlier, the ACA requires your company to offer affordable health care when your business employs more than 50 people. Even if you don’t have that many employees, though, you might consider providing health benefits.
What will employee benefits cost me?
While providing benefits is helpful for your business, it costs money. The exact cost varies based on what benefits you choose to provide and how many people you have opting into the plan.
Why are benefits important?
Here are four reasons that benefits can, well, benefit your business: Improved employee recruitment and retention . Benefits are a valuable tool for both attracting and then keeping top talent. Remember, your competitors — whether they be big businesses or small — compete not only for customers but also for employees.
What is defined contribution plan?
A defined contribution health plan gives each employee a fixed dollar amount to spend on health care, rather than providing a defined group plan for all your employees. It’s not a health insurance plan; it’s a program in which employees are responsible for selecting their own individual health insurance plan and making payments for it out of their own finances. They can then use their defined contribution allowance to reimburse themselves.
What is defined benefit health insurance?
A defined benefit health plan (also called a group health insurance plan) provides medical care for employees and their dependents either through insurance, reimbursement, or another method. This method offers the same benefits to everyone in the plan.
Why is health insurance important?
Improved wellness and productivity. Health insurance helps keep employees healthy so they can come to work (and don’t have to take long periods of sick time). Other benefits — like retirement plans — give them peace of mind. All of this means that employees are less distracted and more productive when they are at work.
How to improve employee benefits?
1. Make Benefits a Part of Overall Employee Compensation Communication.
Why do companies need to make employee benefit marketing a priority?
Companies need to make employee benefit marketing a priority in order to attract and retain their best employees. Employee benefit premiums are on the rise, again: According to the Society for Human Resource Management, 2017 health premium costs rise at least 6% over 2016’s figures. Since the Affordable Care Act, premiums have nearly doubled.
What is the purpose of conducting a regular analysis of employee benefits?
As a standard practice, all employee benefits plan managers need to be evaluating the use of benefits as they pertain to employees. There are some benefits that are not worth offering because employees simply do not use them.
What is smart insights?
Smart Insights, a marketing firm that monitors consumer electronics usage, indicated that as of 2017, the use of mobile devices has exceeded that of desktop computers. More employees are looking to their benefits information on the go, and need clear messaging to encourage them to enroll and use these benefits.
Why is it important to address the why of offerings?
Smart marketing professionals address the “why” of offerings, which helps to increase the likelihood of conversion and sales. Use this same tactic when presenting employee benefits to employees and candidates. The marketing materials must address the needs of individuals. For example, one individual may be looking for flexible benefits that grow as he or she starts a family. Presenting the benefits in this way can help them make the decision to enroll.
When sending out employee benefits communication, is it important to use the right medium?
When sending out employee benefits communication it is important to use the right medium. Email can be good, but to reach individuals by phone, early mornings are the best; by tablet and online use late afternoon and evening messages. 4. Convey Positive Messaging Around Benefit Use.
How to get employees excited about benefits?
Gather a committee of brand ambassadors who can share their experience with using the benefits, how claims were handled, information about local health care centers, and the discounts your company offers. Ask them to encourage their peers to participate in this year’s enrollment, and to share on company review sites how generous your company is.
What is vacation time accrual?
Employees who have vacation allowances accrue a certain number of hours each pay period, similar to paid time off allowances. The biggest difference between a PTO plan and paid vacation time is that PTO can be used for any kind of time off from work, whereas vacation allowance is only for employees to take a vacation or break away from work.
What are the benefits of an employer?
Most employers offer employee benefits packages, which can include basic health coverage and retirement planning. In addition to basic health coverage, employers offer a variety of other perks, depending on the nature of their companies. It can be worthwhile to find out what your employer offers in terms of benefits packages, especially if you are taking on a new position. In this article, we discuss the basic types of employee benefits and additional perks for you to explore.
What is specialist services?
Specialist services. Specialist services, including referrals from primary care physicians, make up a portion of many employee benefits packages. From dermatological health services to sleep specialists, many health coverage options include coverage for non-routine specialist exams and procedures.
What are the options for retirement?
Several common retirement options employers offer include 401 (k) and IRA plans, 403 (b) retirement plans (especially if you're employed with a nonprofit), simplified employee pension (SEP) plans and more.
What is group term life insurance?
Often, these life insurance policies are group-term life insurance, which means the insurer provides the employer with a master contract that extends life insurance coverage to all staff members and is in effect for a certain time period.
What is disability insurance?
Some employers may offer temporary disability insurance plans that provide income support to employees who have suffered an injury or illness outside of work. While disability benefits can vary between employers, many offer some form of short-term disability coverage in the event you're injured on the job.
How long does life insurance last?
Usually, the life insurance term lasts for as long as the employee works for their employer. Other life insurance plans may be available depending on the employer, but group-term plans typically cost less than individual insurance policies.
What Are Employee Perks?
Employee perks are additions to employee compensation — which includes salary and benefits. Perks are not required by law or considered basic necessities. They typically help define and reinforce a company’s overall culture and are considered important parts of enhancing the employee experience.
How to help employees with perk initiatives?
HCM platforms can help provide the data and information you need to track progress toward those goals. Whether it’s through employee surveys, automated PTO tracking or other communication methods, HCM software can even help in the implementation of the employee perk initiatives. Aligning perks to support and reinforce the company culture will help recruit new workers and retain talented ones.
What is HCM platform?
HCM platforms can help administer and track performance of employee engagement efforts, including perks programs. Employee surveys before and after rolling out a program can provide insightful data to help measure efficacy, and HCM platforms can help administer and analyze the results.
How do perks affect employees?
Perks and benefits can impact hiring, retention and employee satisfaction. Benefits like health insurance, dental care or retirement plans are considered part of the overall compensation package. And perks can be the icing on the cake to help boost a company culture that encourages employees to pursue a positive work-life balance, get and stay healthy, continually learn or many other attractive attributes. All this can have beneficial effects on employee wellness, productivity and engagement.
Why do companies offer perks?
There are certainly altruistic reasons companies can offer perks. Whether it’s a flexible work schedule, parental leave or the occasional free lunch, perks can make employees happy. But beyond altruism, perks can play an important role in employee experience and engagement.
Why are perks important for employees?
Employee perks improve the quality of life for employees while encouraging them to start or stay with your company.
How to attract and retain great employees?
One of the best ways to attract and retain great employees is with competitive benefits and perk packages. After pay, robust benefits — especially health benefits — are routinely cited as the most important factor for employees when considering a position. Workplace offerings that used to be seen simply as perks, such as remote work, ...
4 Fundamental Employee Benefits Packages and Perks
For organizations looking to get their employee benefits packages and perks kick-started, there are a few fundamental ideas to keep in mind.
6 Mental and Physical Wellness-Focused Employee Benefits Packages and Perks
There’s a growing trend towards supporting the mental and physical wellbeing of employees. That’s why incorporating the following employee benefits packages and perks can be a great call for originations.
4 Development-Focused Employee Benefits Packages and Perks
Investing in the development of your employees benefits both the team member and the organization. By offering opportunities for employees to develop their skills and increase their knowledge, you’ll show them you care while also making them more valuable to your company.
4 Family-Focused Employee Benefits Packages and Perks
For employees with children, juggling work with raising their kids can be a difficult juggling act, making family-focused employee benefits packages and perks a huge plus for your team members.
10 Outside-the-Box Employee Benefits Packages and Perks
If you’re looking to adopt some progressive employee benefits packages and perks, these are some ideas that are becoming increasingly popular with organizations across the world.
5 Monetary and Material Employee Benefits Packages and Perks
Sometimes, the most valuable employee benefits packages and perks come in the form of monetary compensation or material items.
Do you have a question?
Ask a real person any government-related question for free. They'll get you the answer or let you know where to find it.
What is TSP retirement?
The Thrift Savings Plan (TSP) is a retirement plan for federal government employees and members of the military. Find the basics about participating - Eligibility, contributions, loans, withdrawals, setting up and managing your account. Learn about investment funds - Overview of fund types, fund options, and performance.
How often does the government publish pay tables?
The government publishes new pay tables for federal employees every year.
Does OPM have access to beneficiary information?
OPM and the Office of Federal Employees' Group Life Insurance (OFEGLI) do not have access to your records and cannot answer questions about coverage or beneficiaries.
Is an annuity taxable?
Your pension or annuity payment may be taxable. Find out with the online tool Is My Pension or Annuity Payment Taxable?
Can you change your plans outside of open season?
You may enroll in or change your plans outside Open Season only if you experience a qualifying life event, such as marriage.
Does military service count toward civil service retirement?
Military service does not automatically count toward civil service retirement. To receive credit for military service performed after 1956, you must pay a deposit.
Align better with employees
Employees don’t necessarily think they have bad well-being benefits. Many just don’t think they have good well-being benefits for them.
Take a wholistic approach
Employees have differing views of well-being. What’s important to Judy in Accounting is probably not the top priority for Carl in Quality.
Mend the gap
Many employees don’t access well-being benefits because they don’t know exactly what’s available, the Gartner study found. It’s HR’s job to manage the gap, researchers said.
Find your champions
Some employees are happy with your well-being offerings. They’ve at least tried almost all of them. They likely stuck with what they love and appreciated what they didn’t.
Put sincerity at the heart of efforts
Employees will take your well-being efforts seriously if you prove employees are the top priority.
Fringe Benefits
- Fringe benefits are generally included in an employee's gross income (there are some exceptions). The benefits are subject to income tax withholding and employment taxes. Fringe benefits include cars and flights on aircraft that the employer provides, free or discounted commercial flights, vacations, discounts on property or services, memberships in country clubs or other social clubs…
Unemployment Insurance
- The Federal Unemployment Tax Act (FUTA), with state unemployment systems, provides for payments of the unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only the employer pays FUTA tax; it is not withheld from the employee's wages. The Department of Labor provides information and li…
Workers' Compensation
- The Department of Labor's Office of Workers' Compensation Programs (OWCP)administers four major disability compensation programs that provide wage replacement benefits, medical treatment, vocational rehabilitation and other benefits to federal workers or their dependents who are injured at work or who acquire an occupational disease. Individuals in...
Health Plans
- If an employer pays the cost of an accident or health insurance plan for his/her employees (including an employee's spouse and dependents), then the employer's payments are not wages and are not subject to social security, Medicare, and FUTA taxes, or federal income tax withholding. Generally, this exclusion also applies to qualified long-term care insurance contract…
Plans
Health Insurance
Life and Disability Insurance
Other Employee Benefits
Withholding Taxes
- In addition to providing benefits, many companies withhold taxes for you and you'll need to fill out a form for that too. They know how much to take out based on your completed IRS W-4 Form. On this form, you will need to fill in your name, address, Social Security number, and how many allowances you want to claim.3 You are considered one allowance...
Making Changes to Employee Benefits
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